214 FLORIDA INSURANCE EXAM CERTIFICATION REVIEW
SET Questions with Correct Answers (Grade A+)
Question 1: Which of the following terms is known as the voluntary relinquishment of a given right or
privilege?
Answer: Waiver
Question 2: This Supreme Court case placed the regulation of insurance within the authority of the
federal government by defining insurance as a form of interstate commerce?
Answer: United States v. Southeastern Underwriters Association (1944)
Question 3: Tim was just hired today by MAB INC and wants to join the company's group insurance
policy. What period of time is he currently in and when can he join the plan?
Answer: Probationary period, he can sign up after 90 days
Question 4: If Justin submitted an initial premium with his life insurance application, was provided a
conditional receipt by the insurance company and was ultimately issued a policy as applied for, when
would his insurance policy be considered in force?
Answer: The date of his application or the day he completed any required medical exam
Question 5: When dividends are issued, the policyowner has the following dividend options in utilizing
a return EXCEPT:
Answer: Life Income Option
Question 6: Which two life insurance riders can Bill purchase to guarantee that his policy will continue
without further commitment from him and that income will be paid to him if he becomes totally and
permanently disabled?
Answer: Waiver of premium and Disability Income Riders
Question 7: In a contributory group plan, what percentage of eligible employees must be covered?
Answer: 75%
Question 8: Which statement regarding annuities is CORRECT?
Answer: Variable annuity units are fixed but the annuity payment will vary according to the value of the
annuity unit.
Page 1
,Question 9: In order to be considered currently insured and thus eligible for limited survivor benefits
from Social Security, a worker must have earned ___ credits during the 13-quarter period ending with
the quarter in which the worker died.
Answer: 6
Question 10: Social security is also known as:
Answer: Old Age Survivors and Disability Insurance (OASDI)
Question 11: Insurance is not intended to protect against?
Answer: Speculative Risk
Question 12: Under a family plan life insurance policy, coverage on the breadwinner is often provided
by which of the following insurance types?
Answer: Whole Life
Question 13: Which of the following statements regarding annuity settlement or payout options is NOT
true?
Answer: If the annuitant dies before the principal sum is depleted, the Refund Life Annuity Option will pay
the entire annuity amount to the beneficiary in a lump sum payment or over scheduled installments.
Question 14: The following statements regarding 401(k) retirement plans are correct EXCEPT:
Answer: Plans rarely have a matching contribution component by an employer
Question 15: All of the statements below pertaining to group life insurance are correct EXCEPT:
Answer: If the insurance coverage is less than $75,000, employees do not have to report the employer-paid
premiums as income
Question 16: According to Florida Statues, entering into any agreement to commit any act of
intimidation resulting in the business of insurance is known as:
Answer: Coercion
Question 17: William, age 67, has owned his life insurance policy for the past 15 years and has mailed
his monthly premiums to his life insurance company. Last month he failed to mail the monthly payment
on his premium due date as well as during his policy's grace period. As a result, which of the following
scenarios will MOST likely occur?
Answer: The insurer will provide notification of impending lapse in coverage, and allow at least 21
additional days beyond the grace period to make a payment to prevent the policy from lapse
Page 2
, Question 18: Before executing an exchange of an annuity contract resulting from a recommendation to
a senior consumer, an insurance agent should make reasonable efforts to obtain information from the
applicant concerning the suitability of the recommendation on an approved form, which upon
completion, must be signed by the applicant and agent. Within what period of time must an agent
submit this form to the insurer once it is complete?
Answer: Within 10 days
Question 19: Shelly is considered to be terminally ill and has decided to sell her life insurance policy in
exchange for living benefits to fulfill some final comforts and expenses before her death. In selling her
life insurance policy, Shelly is referred to as a(n)_________and she will receive a percentage of her life
policy's face amount in exchange for ownership of her policy.
Answer: Viator
Question 20: Which of the following is NOT a type of speculative risk?
Answer: Unemployment
Question 21: Which agency collects and provides reliable medical information regarding an applicant's
health history?
Answer: The MIB
Question 22: Tonya failed to pay her life policy's premium on the date in which it is normally due and is
currently 23 days late. As a result of her policy's grace period provision, which outcome will occur?
Answer: Tonya is within her grace period and can pay her premium up to 30 or 31 days after the date in
which the premium is normally due; however, she does not need to pay back any outstanding loans to the
insurer.
Question 23: Which type of E&O policy provides permanent coverage for the actions of an agent
during which time he or she was covered under such policy, regardless of when a lawsuit is filed against
the agent?
Answer: Occurrence Policy
Question 24: In a group life contract, evidence of insurability is
Answer: Required only after the enrollment period ends.
Question 25: For purposes of insurance, which of the following is NOT considered a hazard?
Answer: Peril
Page 3
SET Questions with Correct Answers (Grade A+)
Question 1: Which of the following terms is known as the voluntary relinquishment of a given right or
privilege?
Answer: Waiver
Question 2: This Supreme Court case placed the regulation of insurance within the authority of the
federal government by defining insurance as a form of interstate commerce?
Answer: United States v. Southeastern Underwriters Association (1944)
Question 3: Tim was just hired today by MAB INC and wants to join the company's group insurance
policy. What period of time is he currently in and when can he join the plan?
Answer: Probationary period, he can sign up after 90 days
Question 4: If Justin submitted an initial premium with his life insurance application, was provided a
conditional receipt by the insurance company and was ultimately issued a policy as applied for, when
would his insurance policy be considered in force?
Answer: The date of his application or the day he completed any required medical exam
Question 5: When dividends are issued, the policyowner has the following dividend options in utilizing
a return EXCEPT:
Answer: Life Income Option
Question 6: Which two life insurance riders can Bill purchase to guarantee that his policy will continue
without further commitment from him and that income will be paid to him if he becomes totally and
permanently disabled?
Answer: Waiver of premium and Disability Income Riders
Question 7: In a contributory group plan, what percentage of eligible employees must be covered?
Answer: 75%
Question 8: Which statement regarding annuities is CORRECT?
Answer: Variable annuity units are fixed but the annuity payment will vary according to the value of the
annuity unit.
Page 1
,Question 9: In order to be considered currently insured and thus eligible for limited survivor benefits
from Social Security, a worker must have earned ___ credits during the 13-quarter period ending with
the quarter in which the worker died.
Answer: 6
Question 10: Social security is also known as:
Answer: Old Age Survivors and Disability Insurance (OASDI)
Question 11: Insurance is not intended to protect against?
Answer: Speculative Risk
Question 12: Under a family plan life insurance policy, coverage on the breadwinner is often provided
by which of the following insurance types?
Answer: Whole Life
Question 13: Which of the following statements regarding annuity settlement or payout options is NOT
true?
Answer: If the annuitant dies before the principal sum is depleted, the Refund Life Annuity Option will pay
the entire annuity amount to the beneficiary in a lump sum payment or over scheduled installments.
Question 14: The following statements regarding 401(k) retirement plans are correct EXCEPT:
Answer: Plans rarely have a matching contribution component by an employer
Question 15: All of the statements below pertaining to group life insurance are correct EXCEPT:
Answer: If the insurance coverage is less than $75,000, employees do not have to report the employer-paid
premiums as income
Question 16: According to Florida Statues, entering into any agreement to commit any act of
intimidation resulting in the business of insurance is known as:
Answer: Coercion
Question 17: William, age 67, has owned his life insurance policy for the past 15 years and has mailed
his monthly premiums to his life insurance company. Last month he failed to mail the monthly payment
on his premium due date as well as during his policy's grace period. As a result, which of the following
scenarios will MOST likely occur?
Answer: The insurer will provide notification of impending lapse in coverage, and allow at least 21
additional days beyond the grace period to make a payment to prevent the policy from lapse
Page 2
, Question 18: Before executing an exchange of an annuity contract resulting from a recommendation to
a senior consumer, an insurance agent should make reasonable efforts to obtain information from the
applicant concerning the suitability of the recommendation on an approved form, which upon
completion, must be signed by the applicant and agent. Within what period of time must an agent
submit this form to the insurer once it is complete?
Answer: Within 10 days
Question 19: Shelly is considered to be terminally ill and has decided to sell her life insurance policy in
exchange for living benefits to fulfill some final comforts and expenses before her death. In selling her
life insurance policy, Shelly is referred to as a(n)_________and she will receive a percentage of her life
policy's face amount in exchange for ownership of her policy.
Answer: Viator
Question 20: Which of the following is NOT a type of speculative risk?
Answer: Unemployment
Question 21: Which agency collects and provides reliable medical information regarding an applicant's
health history?
Answer: The MIB
Question 22: Tonya failed to pay her life policy's premium on the date in which it is normally due and is
currently 23 days late. As a result of her policy's grace period provision, which outcome will occur?
Answer: Tonya is within her grace period and can pay her premium up to 30 or 31 days after the date in
which the premium is normally due; however, she does not need to pay back any outstanding loans to the
insurer.
Question 23: Which type of E&O policy provides permanent coverage for the actions of an agent
during which time he or she was covered under such policy, regardless of when a lawsuit is filed against
the agent?
Answer: Occurrence Policy
Question 24: In a group life contract, evidence of insurability is
Answer: Required only after the enrollment period ends.
Question 25: For purposes of insurance, which of the following is NOT considered a hazard?
Answer: Peril
Page 3
